Assam growth estimated at 5.87%; Gogoi presents interim budget

Amid recessionary pressures, the Assam economy grew 5.87% during 2013-2014, state Chief Minister Tarun Gogoi informed the Assembly today.

"As per advance estimate, the GSDP at constant prices (2004-2005) for 2013-2014 reflected a growth of 5.87%," Gogoi, who is also the state Finance Minister, said while presenting the interim Budget for Assam for 2014-2015.

The GSDP at current prices during 2012-13 with an 'quick estimate' is 12.56% higher than 2011-12, he said.

Gogoi said the state has withstood the pressure of global recession and fiscal compression since 2008.

"While I am confident that I shall be able to maintain this trend in the coming days too, I would, however, like to put in a word of caution.

"The overall national growth rate continues to be much below expectation. Our state cannot remain totally insulated for long from global and national economic trends," he said.

The state witnessed revenue surplus of Rs 1,554 crore in 2012-13, he added.

"The fiscal deficit has also turned into a surplus of Rs 1,516 crore and the fiscal deficit to GSDP ratio has come down to (-)1.06% of GSDP during 2012-13 as compared to 1.43% in 2011-12," Gogoi said.

Besides, the debt-GSDP ratio has declined to 18.52% in FY'13 from 30.83% in FY'06.

Also, the interest payment to total revenue receipts has gone down to 6.87% in last fiscal from 18.62% in 2003-04, he said.

Gogoi further said the state government will also revise salaries of its employees in line with 7th Pay Commission, which has already been constituted by the Centre.

"Due to these developments and other unavoidable circumstances, we will have to be extremely careful and avoid all wasteful expenditure and tap every possible revenue earning sources," the Chief Minister said.

The state government will present its full Budget for 2014-15 only after the Central government unveils its full Budget for the next fiscal post the Lok Sabha elections.

"To defray the obligatory and other necessary expenses, I seek vote-on-account on the demand for grants for an aggregate amount of Rs 28,467.20 crore for the period from 1st April 2014 to 30th September 2014," Gogoi said.